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A structured settlement can be a great way to secure a guaranteed stream of future payments. This legal settlement paid out as an annuity rather than in a lump sum, normally has a number of benefits to both the recipient and the payer. The 2 parties especially the former can enjoy certain advantages as you will see in the subsequent paragraphs.

We normally use structured settlements for many different reasons such as providing settlement payments or rewards in form of cash stemming from lawsuits or lottery winnings. Interestingly, most lottery winners now prefer long-term annuity lottery payments to lump sum payments.
Reasons why You Should Go for a Structured Settlement Over a Lump Sum Payment

Should you be presented with both a structured settlement and lump sum payment options as a recipient, it would be prudent to go with the former. And here are the reasons as to why;

1) A Long-Term Financial Plan

It has been confirmed that people who receive lump sum settlements or lump-sum lottery payments normally spend everything within 5 years. Afterwards, many of them become dependent on the government or charitable organizations or their loved ones for support. This is however not the case with a structured settlement arrangement, the funds are paid throughout the beneficiary’s lifetime or an extended period of time.

2) Tax Benefits

A structured settlement may provide a recipient with a significant tax benefit. Most states consider lump sum settlements to be income and thus levy a tax on the payments. However, regular funds that are received from a structured settlement are usually exempted from tax so long as the recipient doesn’t control the funds.

3) Structured Settlement Funds are Managed By Professionals

In most states; the law requires that funds stemming from structured settlements be managed by financial experts. And with proper financial planning, the beneficiary can be sure to have adequate funds to cater for their future expenses.

4) Specific Needs and Future Demands or Contingencies of The Beneficiary May Be Taken into Account

During the negotiation process, the payer and the payee may agree on a long-term settlement payment plan that covers the payee’s specific needs and all manner of future contingencies or demands.

5) Guaranteed Regular Payments

One of the amazing things about structured settlements or annuities is the fact that they are normally protected by state insurance regulations such that when the insurer becomes bankrupt, their obligations will be covered. So you can have a peace of mind knowing that the regular payments are guaranteed no matter what.

There are many other benefits of these sorts of compensations or rewards to the beneficiary including some particular annuity benefits.

If you are considering a structured settlement in your settlement negotiation, it’s important that you involve a specialized consultant to help you through the process.

A company such as True Vision Funding can be a great way to secure long-term financial benefits in terms of compensations or rewards. Serving clients from all the 50 US States, the company’s goal is to assist structured settlement annuitants to realize their financial dreams. And if you want to convert your structured settlement payments into a lump sum amount of cash, still they are your company of choice.

http://truevisionfunding.com/wp-content/uploads/2016/02/struc_blog.jpg347605adminhttp://truevisionfunding.com/wp-content/uploads/2016/05/logo.pngadmin2016-02-16 15:30:242016-07-13 05:05:07How A Structured Settlement Can Work For You